Identifying and Qualifying Distribution Channels

1. Identifying and Qualifying Distribution Channels Archangel Annual Event February 2006 Graham Miller, Neeve Brookes Ltd © Neeve Brookes Ltd 2006

2. Routes to market • Direct via own sales team • Third party distributor • Agency agreement • OEM • E commerce • Co-marketing • Licencing • Trade Sale etc Or a combination The right approach can be market dependant – e.g. USA and Direct to Consumer marketing

3. Finding third party distributors • Look for companies working in the same space perhaps selling complementary products. • Customer contacts. • Exhibitions. • Other companies – who do you know? • Local enterprise groups. • Local embassies. The best distributors are a good test of you and your product.

4. Using the distributor profiling document (1) • Can be used in one of two ways:- - As a response to distributor enquiries where it will ‘weed out’ the less committed. - As a script for face to face meetings.

5. Using the distributor profiling document (2) • Questions 1 to 8 are ensuring that the partner is in the right space. • Question 9 re conflicts need not rule out a cooperation. • Questions 10 to 13 ensure they have the means to promote and asks for past evidence to ensure that it does happen. • Questions 14 to 18 are real test of commitment but you may not be able to insist on a yes to 18. • Questions 19 and 20 are very important think of this as recruiting someone to your team – would you want them to sell for you? • Don’t forget question 25 the answers might surprise you. Get the distribution agreement/contract right!

6. The right characteristics • Small and hungry. • Successful. • Right customer base. • Complementary products. • Someone who can handle, demo your products. • Support network. • Established relationships. • Excellent reputation. • Someone you can work with – is the chemistry right! Personal preference here based on experience

7. Presentation available for downloadwww.neevebrookes.co.uk